Core inflation was driven by a steep increase in air travel costs, official data showed. (Photo: ST FILE)Core inflation, which excludes accommodation andprivate transport costs, jumped to 2.1 percent last month on a year-on-yearbasis, the highest since July 2014, and higher than 1.6 percent in November, 2021.
Headline or overall inflation rose to 4 percent, upfrom 3.8 percent in the previous month and the highest since February 2013 when it surged4.9 percent.
The increase was driven by a steep increase in airtravel costs. December reflected both higherbase airfares as well as the additional costs of mandatory COVID-19 tests.
Apart from airfares, point-to-point transport servicecosts, and tuition and other fees also rose at a faster pace, contributing tothe 2.6 percent rise in the cost of services.
Given the recent stronger-than-projected inflationout-turns, the Monetary Authority of Singapore (MAS) and Ministry of Trade andIndustry (MTI) said they are reviewing their current 2022 forecasts for bothoverall inflation and core inflation.
The surprisingly high inflation in recent months comeson the back of an equally strong economic recovery last year when the Singaporeeconomy expanded by 7.2 percent - the highest in 11 years.
Analysts, however, do not expect double-digitinflation in Singapore or elsewhere. They also do not see the current magnitudeof price increases as a threat to the economic recovery. /.
VNA
